Given the alternatives and cash flows

Assignment Help Financial Management
Reference no: EM13920165

Given the following alternatives and cash flows: Alternative A1 has an investment of $5,000 and an annual income of $1,400/year for ten years. Alternative A2 has an investment of $7,000 and an annual income of $1,900/year for five years If MARR = 10% What is the the difference in present worth NPWA2 - NPWA1 assuming repeatability?

Calculate using excel formulas.

A. 2026

B. -3274

C. -4895

D. -1631

Reference no: EM13920165

Questions Cloud

About the brokerage account : You have $38,063.80 in a brokerage account, and you plan to deposit an additional $3,000 at the end of every future year until your account totals $230,000. You expect to earn 14% annually on the account. How many years will it take to reach your goa..
Social process and social development theory paper : One of the biggest questions in society is why crimes are committed. There are many assumptions on why or what may cause criminals to act the way they do is, such as a neglected social life, poor childhoods, bad parents, low social class, below no..
Model elite-t limited : A commercial truck dealership gets an allocation for 100 trucks from the manufacturer. Model A can be sold at $4500 above factory invoice, Model B at $5200, Model C at $4500, Model D at $4000. The dealership sold plenty of trucks last year, and is..
What portion of the cost of the loan is at risk of changing : Use the information for York Corporation to answer following question(s). Use an Excel spreadsheet that shows all your work with step-by-step explanations. Make sure your final answer is clearly identified. What portion of the cost of the loan is at ..
Given the alternatives and cash flows : Given the following alternatives and cash flows: Alternative A1 has an investment of $5,000 and an annual income of $1,400/year for ten years. Alternative A2 has an investment of $7,000 and an annual income of $1,900/year for five years If MARR = 10%..
Sampling distribution-confidence interval : (Sampling distribution & confidence interval) A random variable has a population mean equal to 1,573 and population variance equal to 952,021.
Different display distinct fallacies : Considering the fallacies discussed in Chapter Four of An Introduction to Logic, construct three different arguments that display distinct fallacies. Give an explanation of why each makes a mistake in drawing the conclusion it does. Review your cl..
How much money will be paid to creditors : Reconstruct the accounting equation for each company using percentages on the right side of the equation instead of dollar values. Which company is more financially stable? Why?
Tallness and additional factors pertinent for cancer : Information on tallness and additional factors pertinent for cancer was acquired in 1996-2001 for middle-aged females with no preceding cancer who were followed up for cancer occurrence (Greene, 2011).

Reviews

Write a Review

Financial Management Questions & Answers

  What is the total rate of return on the stock

A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $55. What is the total rate of return on the stock? What is the dividend yield? What is the Capital Gains Yield?

  Calculating returns-bought bond with an annual coupon

Calculating Returns [LO1] Suppose you bought a bond with an annual coupon of 7 percent one year ago for $970. The bond sells for $940 today. What was your total nominal rate of return on this investment over the past year?

  Allocate the joint costs using the relative sales values

Landmark Coal operates a mine. During July, the company obtained 500 tons of ore, which yielded 250 pounds of gold and 62,500 pounds of copper. The joint cost related to the operation was $500,000. Gold sells for $325 per ounce and copper sells for $..

  Contrast job order costing and process costing

Compare and contrast job order costing and process costing. What types are products are typically accounting for using job order costing and process costing?

  What is the value of a bond that matures

What is the value of a bond that matures in 30 years, makes an annual coupon payment of $100, and has a par value of $1000? Assume a required rate of return of 9%, and round your answer to the nearest $10

  Suppose call on stock with strike price-piece-wise function

Suppose a call on a stock with strike price X +1 cost $1 and a put on a stock with strike price X −1 and the same expiration date costs $1. Suppose the price of the stock on expiration date is given by ST. Find the payoff to the investor that holds b..

  Investment Return-percent return

Investment Return MedTech Corp stock was $51.05 per share at the end of last year. Since then, it paid a $0.55 per share dividend. The stock price is currently $62.60. If you owned 300 shares of MedTech, what was your percent return?

  Factors that cause insurance premiums

Let's identify the factors that cause insurance premiums to increase and discuss ways to lower these insurance costs. What are some things that would cause homeowners, health, auto, life and other insurance premiums to be relatively higher?

  Social-moral-environmental and ethical issues

Social, moral, environmental and ethical issues are part of the investment process and cannot be ignored by financial planners / managers. The burden of these costs fall unevenly on different firms. Some of these firms, especially the large companies..

  What is the worth of this deal to the player

In 2011, a running back signed a contract worth $58.8 million. The contract called for $10 million immediately and a salary of $3 million in 2011, $8.5 million in 2012, $10 million in 2013, $8.9 million in 2014 and 2015, and $9.5 million in 2016. If ..

  About the preferred stock valuation

Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 12% of its $100 par value. Preferred stock of this type currently yields 10%. Assume dividends are paid annually. What is the value of Rolen's preferred stock?

  What is the risk-free price that she can guarantee herself

Suppose a farmer is expecting that her crop of oranges will be ready for harvest and sale as 150,000 pounds of orange juice in 3 months time. Suppose each orange juice futures contract is for 15,000 pounds of orange juice, and the current futures pri..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd